Carney puts Keystone XL on the table in hopes for progress on U.S. steel and aluminum tariffs in 'coming weeks'

OTTAWA — As Prime Minister Mark Carney hopes for a hastened resolution on U.S. steel and aluminium tariffs, he left the White House having put energy on the table as an area of cooperation in exchange for progress on a trade deal. 

A source with knowledge of the discussions between the president and the prime minister said that Carney raised the idea of possibly revisiting the Keystone XL pipeline, which Trump has supported for years.

The pipeline, which was first proposed back in 2005, would carry oil from northern Alberta to Nebraska and has had a troubled history. It was first rejected by former U.S. President Barack Obama, but then later revived by Trump during his first term in office. His predecessor, however, former Democratic president Joe Biden, revoked its permit on his first day in office back in 2021.

National Post is not naming the source, who spoke on condition of anonymity. The conversation was first reported by CBC News.

The source emphasized that Carney brought up the cancelled pipeline in the hopes of seeing progress made on a deal regarding the 50 per cent steel and aluminum tariffs, which Trump levied under S ection 232 of the U.S. Trade Expansion Act. 

The source said it was only an initial discussion, but that leaders agreed that the idea of cooperating on energy would be part of the negotiations going forward.

Intergovernmental Affairs Minister Dominic LeBlanc, who was set to remain in Washington for the coming days, told reporters after their White House meetings on Tuesday that both sides discussed “strengthening the energy partnership with the United States.”

Speaking more broadly, the source said that Keystone XL was just one example of the ways Canada could work more closely with the U.S. on energy. Other areas include uranium and electricity.

That means as Carney presses for a trade deal, restarting the Keystone XL pipeline could transform into a potential bargaining chip.

The source added that the next step would be for Trump to issue a new presidential permit for the project.

As Carney returned to Ottawa on Wednesday, his office signalled he was looking for results on the Canada-U.S. trade talks within weeks.

“The leaders identified opportunities for material progress in trade in steel, aluminium, and energy, and directed their teams to conclude this work in the coming weeks,” reads a statement from the Prime Minister’s Office. 

Carney spent his time in the House of Commons on Wednesday defending the state of the trade talks, as Opposition Conservative Leader Pierre Poilievre pressed him on his lack of a deal.

Bloc Québécois Leader Yves Francois-Blanchet also pressed Carney for proof of results, questioning whether he felt Trump’s nice words towards him were enough.

During their roughly 30-minute Oval Office meeting, Trump praised Carney as a “world-class leader” and a “nice man,” and drew laughter when he said the prime minister could also be “very nasty.”

Carney told MPs that Canadian and U.S. officials were negotiating the terms of the discussed deals regarding steel, aluminum, and energy.

Diamond Isinger, who served as a special advisor to former prime minister Justin Trudeau on Canada-U.S. relations, said it was worthwhile for Carney to meet Trump as he needed to forge a stronger relationship with the president.

“Relationships matter a lot to President Trump, and he is also someone that receives feedback and is suggestible on the basis of who was last in his ear,” said Isinger.

“The opportunity for Canadians to have face time with him to really advance some Canadian interests and concerns face to face means that those are top of mind for him, at least in these coming days and weeks, as opposed to the many inbound texts, calls, other interactions that he’s surely having on a daily basis.”

She added that Carney remains a relatively new prime minister who has yet to spend much time with Trump one-on-one, outside of on the sidelines of international summits and other major world events.

Carney sat down for his first Oval Office meeting with Trump back in May, shortly after his April election win.

Isinger said a face-to-face meeting between leaders would be to announce a joint deal or to try and force progress, the latter of which appeared to be the case for Carney, she said, given his many tariff announcements.

The latest includes a new 25 per cent tariff on heavy trucks and a new levy on softwood lumber.

“This forced the U.S. to actually focus their attention, face to face in real time, on Canada,” she said.

She added that it also matters that both leaders left their meetings by directing their respective teams to continue trade talks, especially on the U.S. side, given, as she said, Trump’s cabinet secretaries act at the president’s “expressed direction.”

“If he asked them to continue talks with the Canadians, it indicates that he’s making this a priority.

Before the prime minister left Washington, he met with Joshua Bolten, the president and CEO of Business Roundtable, an association representing business leaders. 

He also dined Tuesday evening with  Vice President JD Vance and his wife at their residence. Carney was joined on the trip by several of his senior ministers, including Foreign Affairs Minister Anita Anand, who on Wednesday morning met with her U.S. counterpart, Secretary of State Marco Rubio.

National Post

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